No break for Carvana, the “Amazon of used cars” – TheStreet | CarTailz

Concerns are mounting about Carvana, the “Amazon of used cars”.

The online car dealership has been an investor darling during the pandemic. They welcomed the new economy that wanted consumers to buy everything online: groceries, office equipment, transport tickets, meals, clothes, houses and cars.

Carvana (CVNA) – Get a free report was a pioneer in the new way of buying and selling vehicles with his model of automatic machines.

The group also benefited from disruptions in vehicle manufacturers’ supply chains, which had led to a large imbalance between supply and demand for cars at the expense of supply. As a result, car prices had risen sharply, making used cars price competitive with new cars. Interest rates were also near zero, which had a double advantage for Carvana. Funding a consumer vehicle purchase was easy, and Carvana was also able to use the credit market to fund its expansion. The company has thus incurred five debts during the pandemic.

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